Analysts had forecast the deficit would be C$1.00 billion in June. Statscan revised May's deficit to C$1.04 billion from an initial C$0.81 billion.

Overall exports fell by 1.7 percent from May as energy exports decreased by 5.1 percent on lower volumes and prices. Exports of automotive products were off by 5.3 percent.

Imports were down by just 0.2 percent, helped lower by an 11.7 percent fall in energy products caused in part by the timing of shipments and plant shutdowns for maintenance. Imports of machinery and equipment were up by 2.5 percent.

Exports to the United States, by far Canada's top trade partner, fell by 2.4 percent while imports dropped by 2.3 percent. The bilateral trade surplus slipped to C$3.63 billion from C$3.73 billion in May while the deficit with all other nations rose to a record C$5.19 billion.